Global credit investor Fortress Investment Group will invest $100 million in debt capital to support MoneyMe's consumer lending growth as the fintech considers an initial public offering in early 2019.

Fortress's investment is part of a $120 million asset-backed securitisation deal, which also includes a $20 million bond, issued by Evans & Partners, which was oversubscribed.

MoneyMe, which has made $150 million in personal loans to 70,000 customers in the past four years, is both cash flow positive and profitable, very rare for an Australian fintech.

Established in 2013, its net loan book is growing at $1 million each week, as it targets the credit card portfolios of the major banks. It also competes with peer-to-peer lenders like SocietyOne and Ratesetter.

Co-founder and CEO Clayton Howes said there will be more MoneyMe deals to come, including more debt-funding facilities and a possible IPO on the Australian Securities Exchange.

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"We will look to public markets for the next stage of our journey," he said. "An IPO in perhaps around 18 months would certainly not be out of the question."

Of its $150 million in lending, $80 million has been advanced in the past 12 months. Mr Howes said the Fortress facility should provide enough funding for another 12 to 18 months of loans, at which time MoneyMe will consider an additional debt funding deal between $250 million to $500 million. This would surpass ASX-listed zipMoney's $260 million debt facility announced in May, the largest debt market deal for an Australian fintech.

Access to global funding will allow MoneyMe "to compete and become a genuine threat to the banks, given Millennials are disenfranchised with them", Mr Howes said.

Mr Howes, a former Vodafone executive, said Fortress's investment followed a stringent, nine-month due diligence process, which validated both the MoneyMe business model and the regulatory environment for Australian fintech. Unlike some other fintech securitisation warehouse structures, Fortress has attached no equity options to the deal.

The looming arrival of the government's "open banking" and "comprehensive credit reporting" regimes were a positive driver of Fortress' decision to invest, Mr Howes added. Open banking "will change the game", and MoneyMe is ready to use it. Of MoneyMe's 50 employees, half are technology architects.

Customers are typically aged between 26 and 38. MoneyMe's level of bad debts is below 3 per cent, significantly below the level for many bank's credit card books.

The start-up has had to battle negative public perceptions about payday lending but Mr Howes said the whole company was built with tighter regulation in mind. Its average loan size is $5000, higher than typical small amount credit contracts. Its loans are priced base on borrower risk, assessed from a range of data sources. The average interest rate is 21 per cent per annum, equivalent to that on a credit card.

Yet 20 per cent of borrowers pay less than 15 per cent in annual interest. The lowest annual interest rate is 8.99 per cent, while the highest rate is 30 per cent, well below the 48 per cent maximum annual rate allowed under the consumer credit laws.

Mr Howes said he expected interest rates would fall as the company wins cheaper funding from global markets. "As we grow, and the integrity of our book grows along with our ability to raise capital, we expect to be in a strong position to compete on market share."

MoneyMe was the second-fastest growing Australian technology company last year based on revenue growth, according to the Deloitte Technology Fast 50. Earlier this month, it appeared on the H2 Ventures KPMG Fintech100 list, which Mr Howes said has forced him to put on an extra staff member to deal with new inquiries from potential investors in the US, Canada and Asia.

Fortress Investment Group was purchased earlier this year by SoftBank for $US3.3 billion. Since the deal, Mr Howes said the fund has been looking for higher quality credit.

MoneyMe isn't the first Australian fintech to attract capital from a US-based alternative investor: online business lender Prospa has raised more than $100 million in debt financing, including from The Carlyle Group.